The sound is working sound (sorry for the pun)?
For I remember that Ufo: Enemy Unknown made some bugs when the sound driver was not installed correctly (at least, for me).
edit
I would really recommend DOSBox.
Follow these steps:
(It can be convenient to rename the folder called 'X-Com - Terror From The Deep' to 'tftd'.)
1. open dosbox
2. type: mount c: c:\.... (where the folder TFTD is located)
3. type: c:
(check: press dir to see if there is a folder called tftd)
4. type: cd tftd
5. type: terrorcd.bat
If problems occur run install and set up your soundcard.
Let me know if problems persist!
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